<\/p>\n
\n If you’ve been waiting for lower mortgage rates, today just might be your day.<\/span>\n <\/p>\n<\/p><\/div>\n \n The average interest rate on a 30-year, fixed-rate mortgage has dropped to 6.02% APR, according to rates provided to NerdWallet by Zillow. This marks an 11 basis point decrease from yesterday and a 16 basis point decline from a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.<\/span>\n <\/p>\n<\/p><\/div>\n \n While a significant drop is certainly eye-catching, it’s essential to consider the overall direction of mortgage interest rates rather than focusing solely on today’s figures. If you’re pleased with the current rates, it may be time to get serious about your home search or start evaluating your refinancing options.<\/span>\n <\/p>\n<\/p><\/div>\n \n Mortgage rates are <\/span> \n Typically, the Nerds are <\/span> \n Adding to the pressure, the Federal Reserve’s next meeting is at the end of this month. The central bankers are at a critical juncture, having just <\/span> \n There is no universal \u201cright\u201d time to start shopping \u2014 what truly matters is whether you can comfortably afford a mortgage at today\u2019s rates.<\/span>\n <\/p>\n<\/p><\/div>\n \n If the answer is yes, don\u2019t stress too much about potentially missing out on lower rates later; refinancing is always an option down the line. Focus on getting <\/span> \n NerdWallet\u2019s <\/span> \n If you already have a quote you\u2019re satisfied with, consider <\/span> \n Rate locks shield you from increases while your loan is processed, and given the market’s volatility, that peace of mind can be invaluable.<\/span>\n <\/p>\n<\/p><\/div>\n \n \ud83e\udd13 <\/span> \n Refinancing may be a wise choice if today\u2019s rates are at least 0.5 to 0.75 percentage points lower than your current rate (and if you plan to stay in your home long enough to recoup closing costs).<\/span>\n <\/p>\n<\/p><\/div>\n \n With current rates, you might want to consider refinancing if your existing rate is around 6.52% or higher.<\/span>\n <\/p>\n<\/p><\/div>\n \n Also, think about your goals: Are you aiming to lower your monthly payment, shorten your loan term, or convert home equity into cash? For instance, you might be more comfortable with a higher rate for a <\/span> \n If you’re seeking a lower rate, utilize NerdWallet’s <\/span>\n Average mortgage rates, last 30 days<\/span><\/span>
\n <\/h3>\n<\/p><\/div>\n\n \ud83d\udcc9 When will mortgage rates drop? <\/span><\/span>
\n <\/h3>\n<\/p>\n
\n constantly changing,<\/span><\/span>
\n as a significant part of <\/span>
\n
\n how rates are set<\/span><\/span>
\n <\/a>
\n depends on reactions to new inflation reports, job numbers, Fed meetings, global news… you name it. Even minor fluctuations in the bond market can impact mortgage pricing.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n looking ahead<\/span>
\n <\/a>
\n to significant data releases. However, due to the <\/span>
\n
\n government shutdown<\/span>
\n <\/a>
\n , information we anticipated, like the <\/span>
\n
\n CPI report<\/span>
\n <\/a>
\n originally scheduled for today, is delayed. The CPI is now expected to be released on Oct. 24, as furloughed employees are called back to prepare the report. We’ve also missed the jobs report that was supposed to come out on Oct. 3. These official figures are crucial for future projections, as they provide insights into the Federal Reserve’s likely actions; after all, data is essential for the Fed’s decision-making process.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n cut rates in September<\/span>
\n <\/a>
\n . For now, we will be closely monitoring the markets \u2014 as will the Fed.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83c\udfe1 Should I start shopping for a home?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n preapproved<\/span><\/span>
\n <\/a>
\n , comparing lender offers, and understanding what monthly payment fits your budget.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n affordability calculator<\/span><\/span>
\n <\/a>
\n can assist you in estimating your potential monthly payment. If purchasing a new home isn\u2019t feasible right now, consider strengthening your buyer profile. Use this time to pay down existing debts and build your down payment savings. This approach not only frees up more cash flow for future mortgage payments but can also secure you a better interest rate when you’re ready to buy.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83d\udd12 Should I lock my rate?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n locking your mortgage rate<\/span><\/span>
\n <\/a>
\n , especially if your lender offers a float-down option. A float-down allows you to take advantage of a better rate if the market drops during your lock period.<\/span>\n <\/p>\n<\/p><\/div>\n
\n Nerdy Reminder:<\/span><\/span>
\n Rates can change daily, and even hourly. If you\u2019re satisfied with the deal you have, it\u2019s perfectly fine to commit.<\/span>\n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n\n \ud83d\udd01 Should I refinance?<\/span><\/span>
\n <\/h3>\n<\/p>\n
\n
\n cash-out refinance<\/span><\/span>
\n <\/a>
\n than for a rate-and-term refinance, provided the overall costs are lower than keeping your original mortgage and adding a HELOC or home equity loan.<\/span>\n <\/p>\n<\/p><\/div>\n
\n
\n refinance calculator<\/span><\/span>
\n <\/a>
\n to estimate your savings and understand how long it would take to break even on the costs of refinancing.<\/span>\n <\/p>\n<\/p><\/div>\n\n \ud83e\uddd0 Why is the rate I saw online different from the quote I got?<\/span><\/span>
\n <\/h3>\n<\/p>\n